Daily chart:
On daily charts BHEL has already reached the lows seen during 25th May (when Nifty nit 4800 level). When all major EMAs don't provide any support, I am looking for POC from march 2009 (@2255) and VWAP @2165 to provide support.
An interesting thing is the BHEL was the first one to bottom out in September 2008 and by March 2009 when Nifty revisited 2500 levels, BHEL didn't revisit the lows. Now BHEL seems to be the first one to fall. Déjà vu?
Monthly MP monthly chart:
Monthly chart shows that any bounce to 2378 might be sold into and next big resistance will be 2450-2465 (monthly VWAP/VAL of previous 2 months)
OI Story: OI has gone down more than 20% from the time it reached 2700+. OI that got added from tank day of 2490+ to 2434 immediately got cut in next two days. Now DEC futures have seen much bigger OI addition (almost 7m) from 2420 levels. Shorts are getting rolled over now.
If Nifty tanks badly from here, BHEL could relly head to 2185-2165 range because those shorts will not go without making money!
Sentiment:
Karvy recommending a short in it from 2265-2260 for target of 2185-2200. Brokerages recommending short after 18% fall from peak ==> may be its a sign of bottoming?
What's the Risk?
The Government is acting like a sucker and announcing FPOs for any PSU that it can given investor appetite shown for COALINDIA. So even though everything about BHEL might be good but if Govt announces some stake sale (which typically market makers will already know) one might get screwed buying the dip!
Examples are - SCI, MNDC ..
What's the Risk?
The Government is acting like a sucker and announcing FPOs for any PSU that it can given investor appetite shown for COALINDIA. So even though everything about BHEL might be good but if Govt announces some stake sale (which typically market makers will already know) one might get screwed buying the dip!
Examples are - SCI, MNDC ..
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